Indonesian Political, Business & Finance News

Business groups set up forum of cooperation

| Source: JP

Business groups set up forum of cooperation

JAKARTA (JP): Indonesian business associations established a
forum yesterday to face the increasing competition in the global
economy following the implementation of the new principles of the
General Agreement on Tariffs and Trade (GATT).

A number of powerful business people, including the president
of Sahid business group, Sukamdani S. Gitosardjono, timber tycoon
Muhammad (Bob) Hasan and the chief commissioner of PT Astra
International, A.R. Ramly, showed their support to the founding
of the umbrella organization.

"The function of this forum is to organize ourselves against
foreign competitors with the implementation of new GATT
principles early next year," said the 66-year-old Sukamdani, who
organized and chaired the final session of a two-day dialogue
yesterday.

He announced to some 150 business leaders that the name of the
loose organization is the Forum Kerjasama Asosiasi-Asosiasi
Perusahaan Tingkat Nasional (FKAP) or the National Cooperation
Forum of Company Associations.

The establishment of the forum was processed during the
national dialogue between business people and government
officials to discuss the impact of GATT at a five-star hotel in
Central Jakarta.

Minister of Trade Satrio Budiharjo Joedono, Minister of
Industry Tunky Ariwibowo and Minister of Cooperatives and Small
Enterprises Subiakto Tjakrawerdaya each encouraged the
associations to form such an umbrella organization during their
respective speeches.

"As long as it does not break the rules, why not?" said Bob
Hasan, a close associate of President Soeharto, when asked by a
participant of the dialogue whether the founding of the forum
contradicts the laws of the Indonesian Chamber of Commerce and
Industry (Kadin), which permits only a single business
organization throughout the country.

Kadin

An executive of Kadin had earlier aired his disapproval of the
founding of FKAP, saying that Kadin had recently revised its
statute to give associations a better position in the chamber.

Kadin Chairman Aburizal Bakrie, who was invited to open the
two-day dialogue, was unable to deliver his speech due to
commitments abroad.

Both Sukamdani and Ramly ran for the chairmanship of Kadin
before being defeated by Aburizal, the chairman of Bakrie &
Brothers business group, during an election in January.

Sukamdani told participants of the meeting yesterday that the
signatories of the declaration -- namely banker I Nyoman Moena,
businessmen Sri Mulyono Herlambang, M.B. Nawawi, Wisnu H.
Krestowo and Sukamdani -- had appointed eleven persons,
including the five, to form the executive board of the forum.

The other six members are Bob Hasan, Ramly, Soelarto
Hadisumarto, Handoko, Rosita S. Noer and Mohammad Taha.

Sukamdani stressed that the forum is not an alternative to
Kadin, adding that it will cooperate with Kadin for the sake of
Indonesian business people.

Several business associations -- such as the Indonesian
National Air Carrier (Inaca), the Association of Indonesian Oleo
Chemical Companies (Apolin), the Indonesian Fashion Designers
Association (APPMI), the Indonesian Retailers Association (AP3I)
and the Indonesian Forestry Community -- coordinated to organize
the two-day national dialogue.

Tubagus Mochtar Atmadja, a commissioner of the Surabaya Stock
Exchange and also a member of the steering committee of the
dialogue, told The Jakarta Post that Bob Hasan and Sukamdani are
the candidates to chair the forum.

Mochtar said it would be better to let Bob Hasan lead the
forum on the grounds that Sukamdani had earlier run for the
leadership of Kadin.

"We must avoid an image that this forum is challenging Kadin,"
he said.

Sukamdani is a former chairman of Kadin. (09)

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